Unfair Contractual Terms in Career Conversion Programmes that Require Trainees to Pay Compensation for Termination

Miss Rachel Ong asked the Minister for Manpower whether the Government will consider (i) establishing clear guidelines on prohibited contractual terms in Career Conversion Programmes to safeguard trainees in employer-initiated terminations, (ii) ensuring that trainees are informed of these guidelines and (iii) providing trainees with access to advice on the fairness of employer-set terms, especially where contractually liquidated damages exceed programme fees or appear disproportionate to training costs.

We are committed to safeguarding the interests of Career Conversion Programme (CCP) trainees. Companies that are successfully onboarded to CCPs typically have progressive workplace practices and demonstrate a genuine commitment to supporting individuals in their career transitions. Companies that are found to be engaging in egregious practices will be suspended from participating in CCPs.

While companies may have legitimate reasons to terminate a contract and seek liquidated damages (LD) in certain cases such as those involving misconduct, they should not seek refunds from trainees for costs in excess of what the companies have incurred. Government subsidies should be explicitly excluded from the calculation of LD to ensure that the total amount recovered by the employer will not exceed their actual expenditure, net of Government subsidies.

Trainees who believe that they have been subject to unreasonable employment clauses may seek assistance from their unions, the Tripartite Alliance for Fair and Progressive Employment Practices, or the Ministry of Manpower.